Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what assessment he has made of the likely effect of changes in vehicle excise duty in April 2017 on (a) zero emission capable taxis and (b) costs for individual buyers of such taxis.

Taxis are considered cars for the purposes of VED. As such, new taxis purchased after 1 April 2017 will be treated under the new VED system. We expect zero emission capable taxis to be available on the market in the second half of 2017. If these are priced at above £40,000 they will be liable for an additional rate in the first five years of the Standard Rate, as with any other car.

The Government is investing to help make taxis greener and cleaner, reaffirming our commitment to improving the UK’s air quality. The Department for Transport announced last month £64 million to promote the take up of zero emission capable taxis in cities across the country.